European electricity prices take downward turn

AleaSoft Energy Forecasting’s latest analysis found electricity prices fell across the major European markets last week due to a drop in gas allowances prices and electricity demand. Meanwhile, Germany, Italy and Portugal broke their solar production records for a day in February.

Weekly average electricity prices fell across the major European markets during the third week of February, according to analysis by AleaSoft Energy Forecasting.

The consultancy noted prices decreases across the Belgian, British, Dutch, French, German, Italian, Nordic, Portuguese and Spanish markets when compared to the week prior.

The weekly average was below €110 ($114.40)/MWh in all markets, except the Italian market, which recorded €148.38/MWh. The Nordic market continued to have the lowest average, recording €53.80/MWh.

AleaSoft attributes the decline to a fall in gas and CO2 emission allowance prices, which settled at a minimum price 6.9% lower than the week prior for the lowest figure recorded since mid-January. A drop in electricity demand, as well as an increase in wind energy production in some markets, also helped bring electricity prices down.

During the fourth week of February, AleaSoft is expecting electricity prices to continue falling across most European markets, driven by a further drop in demand.

AleaSoft says solar energy production increased across France, Germany, Italy, Portugal and Spain last week, reversing the downward trend from the week before.

The German, Italian and Portuguese markets all broke their all-time records for solar energy production during a day in February. Germany recorded 211 GWh on February 19, Italy produced 81 GWh on February 21 and Portugal hit 18 GWh on February 23.

AleaSoft is predicting solar energy production to decrease in Germany, Italy and Spain this week.